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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Skeeter Bug who wrote (23641)	8/31/1998 2:37:00 AM
From: KLINVESTOR	Read Replies (1) \| Respond to of 70976

The DRAM pricing may be plastered everywhere but irrespective, two months ago semi-equip stocks in general were much higher than they are today and DRAM pricing was much lower which to use your point they must have still been losing even more money back then. Still my point is that if prices have been rising that is a sign that the supply/demand balance must becoming closer. Otherwise, factories would be completely closed and prices would be continuing to slip. Further to your point on the Koreans having huge inventories in 1997 and then unleashing them on the market is actually the same point I am making. That unloading made it virtually impossible to guage how close the supply/demand balance really was since clearly supply greatly exceed demand when this inventory was being dumped. Now it appears the inventory situation has worked itself out. Prices have to come back or fab cost cutting has to continue as it always does for profitability to return but if prices are rising that is clearly a good sign. Your only comment I do not understand relates to phony inventory hold backs. What is that in reference to at present?